HIF, Betapro Inverse Capped Financial.

HIF hif s

The HIF came into existence around the time of the lows in the market, March 2009. This is an inverse ETF and consequently does the opposite of what the market does. As financials moved up to peak sometime in Q2 of 2011 this ETF hit it’ low.  From $21 to just under $8. There is no leverage. As we know the Royal just to pick on one of them is now down more than 20% from the highs, this one is up 9.40-7.90/ 7.90 = 19%, a fairly good hedge.

The wave count suggests that we are in a first up leg, perhaps in 5 of 3. An initial target is around $12 , but much higher levels are fairly reasonable. This ETF contains most financials which would include the insurers and the banks. If selling for tax reasons is not acceptable ( in my opinion something that is upon to debate depending on the expected size of the loss) this is a great instrument. You keep the dividend (where applicable) and avoid  the capital gains taxes.